QUESTION
Am I legally required to put employed in my tax files?
Asked on Mar 14th, 2021 on Taxation - New York
More details to this question:
I am a receiver of snap, and unemployed. But my brother has a business with my name which he bought from Delaware LLC. He sells virtual gift cards and the money he gets come to a business PayPal under my name. Do I have to put that business on the tax files even though I don’t get any of the business money? Does that legally make me employed?
1 ANSWER
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Under this scenerio you are not employed. Also, the IRS doesn't ask the question "are you employed". What they ask is do you have income and that usually means employment. However, income can come from investment, pensions, capital gains and a myriad of other sources.
Here is the problem; Paypal could report the activity from this account and that will be in your name. The IRS will get a copy of anything Paypal reports, and now the IRS will expect you to file something. If this happens you could likely sort it out, but you are not going to want to spend the time and frustration to do so.
Did I mention letting somebody else use your account like this is a horrible idea?
Answered on Mar 18th, 2021 at 11:06 PM